China’s Xiaomi Faces International Expansion Setback

Just being a Chinese-made smartphone puts Xiaomi at a branding and security deficit on the global stage, but now a legal decision in India has further stymied the company’s growth plans in the world’s second-largest nation.

Xiaomi published a note on its official Indian website, stating that the company will suspend sales of Xiaomi smartphones in this country. The Delhi High Court ruled that Xiaomi infringed a patent from Ericsson and it issued an order to suspend the sales and import of Xiaomi smartphones in India.

Hugo Barra, Xiaomi’s global vice president, said in the letter that Xiaomi has been committed to continue their sales of Redmi Note and Redmi 1S devices in India. However, they have been forced to suspend sales until further notice due to an order passed by the Delhi High Court. As a law abiding company in India at least, they are investigating the matter carefully and assessing their legal options.

Related reports revealed that Ericsson previously asked Xiaomi to pay patent fees in July 2014, but did not receive any response which appears in line with many Chinese tech companies’ decisions to ignore intellectual property rights. Based on the decision of the Delhi High Court, Xiaomi will not be able to import, promote or sell their products in India until they settle the patent dispute with Ericsson.

Ericsson also said in a public statement that it is unfair for Xiaomi to benefit from Ericsson’s substantial R&D investment without paying a reasonable licensee fee for their technology. They look forward to working with Xiaomi to reach a mutually fair and reasonable conclusion.